Eye On Housing
The report from the Federal Reserve Bank of Boston discusses the recent trends in consumer price inflation, focusing on the period from 2021 to June 2023. After experiencing elevated readings in 2021 and 2022, inflation has moderated this year. The total consumer price index (CPI) decreased from 6.4 percent in December 2022 to 3.1 percent in June 2023, with core… Read More ›
Tag Archive for ‘housing costs’
Inflation Cools While Shelter Costs Remain High
Consumer prices in October remained unchanged, with the increase in shelter index being offset by the decline in the gasoline index. This cooling inflation increases the probability that the Fed is done increasing rates. Despite the slowdown, shelter costs continue to be a key driver of inflation, accounting for over 70% of the total increase in all items excluding food… Read More ›
Inflation Shows Further Signs of Cooling
Consumer prices in March saw the smallest year-over-year gain since May 2021 with a ninth consecutive month of a deceleration. While the shelter index (housing inflation) experienced its smallest monthly gain since November 2022, it continued to be the largest contributor to the total increase, accounting for over 60% of the increase in all items less food and energy. The… Read More ›
Regulation: 40.6 Percent of the Cost of Multifamily Development
Recently, the National Association of Home Builders (NAHB) and the National Multifamily Housing Council (NMHC) undertook a joint research effort to find out how much government regulation adds to the cost of building new multifamily housing via a survey distributed to multifamily developers. The research finds that an average of 40.6 percent of total development costs can now be attributed… Read More ›
Inflation Hits Another New 40-Year High in March
Driven by higher food, gasoline and housing cost, consumer prices continued to accelerate in March. This marked the sixth straight month for inflation above a 6% rate and was the fastest annual pace since December 1981. Though gas prices have fallen slightly from their March highs, the pace of inflation will likely stay high in the months ahead as lockdowns… Read More ›
Regulation Now Accounts for $93,870 of the Average New Home Price
A new NAHB study shows that, on average, regulations imposed by government at all levels account for $93,870 of the final price of a new single-family home built for sale. Of the $93,870, $41,330 is due to a higher price for the finished lot, attributable to regulations imposed during the lot’s development. The remaining $52,540 is the result of regulatory… Read More ›
Regulation: Over 30 Percent of the Cost of a Multifamily Development
Regulation imposed by all levels of government (whether local, state or federal) accounts for 32.1 percent of the cost of an average multifamily development, according to a new study conducted jointly by the National Association of Home Builders (NAHB) and the National Multifamily Housing Council (NMHC). The study is based primarily on a survey of multifamily developers from both organizations. The results… Read More ›
Regulation: 24.3 Percent of the Average New Home Price
A new NAHB study shows that, on average, regulations imposed by government at all levels account for 24.3 percent of the final price of a new single-family home built for sale. Three-fifths of this—14.6 percent of the final house price—is due to a higher price for a finished lot resulting from regulations imposed during the lot’s development. The other two-fifths—9.7… Read More ›
Increases Outnumber Declines by 2 to 1 on HUD’s FMR List
On August 15th, HUD published its list of proposed Fair Market Rents (FMRs) for 2015. FMRs are used as subsidy limits in HUD’s Housing Choice Voucher Program, but also figure into other housing programs in various ways. A preliminary, proposed list is circulated in advance to allow for public comment before the final version is published, as required by law,… Read More ›
New Homes are Less Expensive to Maintain
April is new homes month. And one of the virtues of a newly constructed home is the savings that come from reduced energy and maintenance expenses. In a previous analysis, we used data from the 2009 American Housing Survey (AHS) to offer proof. The AHS classifies new construction as homes no more than four years old. For routine maintenance expenses,… Read More ›